Triple Flag Delivers Record Results in Q2 2023 as Portfolio Expansion Bears Fruit

• Triple Flag reported strong Q2 performance, setting new quarterly records with sales of 26,616 gold equivalent ounces and revenue of $52.6 million USD.
• The integration of Mavericks Metals is nearly complete, enhancing cash flow diversification and scale without increasing overhead costs.
• Based on the solid performance, the company raised its dividend by 5% to 21 U.S. cents per share annually.
• Recent acquisitions and partnerships include the successful transaction with implants and the acquisition of a royalty on the producing Agbaou gold mine, which is set to go public on the Toronto Stock Exchange.
• Triple Flag's financial position remains robust with $65 million USD in debt, a quarterly free cash flow rate of about $160 million USD, and over $640 million USD available for future investments.

Triple Flag Precious Metals Corp. announced record financial and operating results for the second quarter of 2023, driven by contributions from recent acquisitions and steady performance across its portfolio of royalties and streams.

Financial Highlights

• Record quarterly revenue of $52.6 million, up 41%
• Record quarterly operating cash flow of $41.6 million
• Integration of Maverix Metals acquisition completed, delivering targeted synergies
• Quarterly dividend raised 5% to 21 US cents per share

Triple Flag generated revenue of $52.6 million in Q2 2023, a 41% increase compared to the previous quarter and a new company record. This strong result was underpinned by record gold equivalent ounce sales of 26,616 ounces. Operating cash flow also hit a new high of $41.6 million for the quarter.

The company successfully integrated the assets acquired from Maverix Metals during the first half of 2023. Triple Flag delivered on identified synergies from the acquisition while expanding the portfolio's scale, cash flow diversification and optionality. Despite the addition of new assets from Maverix, Triple Flag has not needed to increase overhead costs to manage the portfolio.

Reflecting its strong operating performance and financial position, Triple Flag raised its quarterly dividend by 5% to 21 US cents per share. The company remains focused on pursuing disciplined growth while maintaining a prudent capital structure to increase value and cash flow per share over time.

Portfolio Performance

• Assets acquired from Maverix performing as expected
• Victorian EPA lifted restrictions on Fosterville, allowing full operations to resume
• Northparkes and Beta Hunt deliver resource growth
• Implats to acquire Royal Bafokeng Platinum after prolonged takeover battle

Triple Flag's producing royalty and stream assets performed in line with expectations during Q2 2023. The assets acquired from Maverix are operating as planned, with strong results notably achieved at the Beta Hunt gold mine in Australia and Camino Rojo in Mexico.

Restrictions imposed on the Fosterville mine in Victoria, Australia by the Environment Protection Authority (EPA) were lifted during the quarter. The EPA had prohibited underground mining activities at Fosterville between midnight and 6am due to concerns over low-frequency noise. With the lifting of restrictions, the mine returned to 24-hour operations in June. Additional underground development delayed by the prohibition can now be progressed.

The company highlighted positive reserve and resource growth results achieved in Q2 2023 at the Northparkes copper-gold mine in NSW, Australia and Beta Hunt mine in Western Australia. Both operations are covered by Triple Flag's royalties.

Finally, Triple Flag congratulated Implats Platinum on its pending acquisition of Royal Bafokeng Platinum. The prolonged takeover battle for Royal Bafokeng's assets reflected the quality of the company's mines and infrastructure. Triple Flag holds a gold stream over Royal Bafokeng's operations. With Implats being one of the world's largest platinum group metals producers, Triple Flag is optimistic about the future performance of Royal Bafokeng's assets under Implats' ownership.

Growth Initiatives

• Orion Metals stream financing on track for 2024
• Acquisition of 2.5% royalty on producing Agbahou gold mine
• Deal pipeline remains active with strong balance sheet to support growth

Looking ahead, Triple Flag has several growth initiatives underway. The company remains on track to finalize a silver stream financing package with Orion Minerals in 2024 to support the development of Orion's Prieska Copper-Zinc Project in South Africa. Orion is working to complete a feasibility study update on Prieska later this 2022.

During Q2 2023, Triple Flag acquired a 2.5% net smelter return royalty on the producing Agbaou Gold Mine in Côte d’Ivoire, operated by Allied Gold Corp. Allied Gold is expected to list on the Toronto Stock Exchange in Q3 2022.

Triple Flag reported its corporate development pipeline remains active. With $65 million in debt, annualized free cash flow of $160 million and an undrawn $575 million revolving credit facility, the company has approximately $640 million in liquidity available to fund additional acquisitions.

Triple Flag Precious Metals delivered record financial results in the second quarter of 2023, demonstrating the strengths of its royalty and streaming business model. Integration of the Maverix Metals acquisition was completed smoothly, expanding the portfolio's scale and diversification. The company increased its dividend on the back of strong operating cash flows.

Multiple growth initiatives are progressing, including the pending Orion Metals stream financing and the recent acquisition of a royalty on the Agbahou gold mine. With a robust balance sheet and deal pipeline, Triple Flag appears well-positioned to continue growing its portfolio and cash flows. The company's management team maintains a focus on generating solid returns for shareholders over the long term.

The Investment Thesis for Triple Flag Precious Metals

Strong Financial Performance

• The company has demonstrated a track record of delivering steady revenue and cash flow growth. Q2 2023 results were very robust with records set for revenue, operating cash flow, and gold equivalent ounces sold.

Attractive Business Model

• As a royalty and streaming company, Triple Flag generates high-margin revenue without taking on mining costs or capital expenditure risk. This makes its cash flows more predictable compared to miners.

Portfolio Diversification

• Triple Flag has over 200 royalties and streams across 17 countries and 45 producing mines. This diversity reduces risk exposure to any single asset. Recent acquisitions have further expanded diversification.

Disciplined Growth Strategy

• The company pursues acquisitions in a disciplined manner, focusing on value enhancement and cash flow per share growth. The recent Maverix deal expanded the portfolio without overextending the balance sheet.

Strong Balance Sheet

• With low debt, an undrawn credit facility, and robust free cash flow, Triple Flag has ample financial capacity to continue growing its portfolio.

Inflation Protection

• As a precious metals royalty company, Triple Flag can benefit from inflationary pressures which tend to drive up gold and other commodity prices.

Attractive Dividend

• The recent 5% dividend increase provides investors with a compelling quarterly cash yield along with upside potential if commodity prices rise.

Triple Flag Precious Metals offers investors defensive diversified exposure to precious metals, inflation protection, reliable cash flow generation, and growth potential - underpinned by financial discipline and a strong balance sheet. For investors seeking precious metals exposure, it represents an attractively valued option.